The gaming industry in India is on the brink of a transformative growth phase. With the market size estimated at USD 3.49 billion in 2024 and projected to reach USD 7.24 billion by 2029, growing at a CAGR of 15.68% during this period, according to Mordor Intelligence Report, India’s gaming sector is poised to become a significant global player. This growth is driven by a combination of factors including a large youth population, improving IT infrastructure, and widespread adoption of smartphones and high-speed internet.
India’s position as one of the countries with the largest youth populations globally provides a fertile ground for the gaming industry. This demographic advantage, coupled with increasing disposable incomes and greater internet penetration, is catalyzing the expansion of the gaming market. According to The Economic Times, the cost of mobile data in India is among the lowest globally, at USD 0.26 per gigabyte, compared to USD 6.66 in the UK and USD 12.37 in the US. This affordability has led to increased internet usage, with 46% of the population now regularly online, making gaming the fastest-growing industry in the country.
The integration of WEB3 technologies, including decentralization, virtual reality (VR), augmented reality (AR), and the metaverse, is revolutionizing the gaming landscape in India. A survey by NDTV Profit reveals that 30% of the 450 Web3 businesses in India are engaged in the gaming industry, with recent investments in Web3 games amounting to USD 400 million. This technological evolution is enhancing the gaming experience, making it more immersive and interactive.
In line with Prime Minister Narendra Modi’s vision for a “Digital India,” the government has been proactive in shaping the online gaming sector. Continuous measures have been taken to align the industry with national digital goals. The establishment of the Inter-Ministerial Task Force (IMTF) aims to recommend universal, national-level legislation for regulating online gaming. Additionally, a Group of Ministers (GoM) has been tasked with proposing a tax structure and regulatory framework for the sector, underscoring the government’s commitment to fostering a robust and well-regulated gaming ecosystem.
Prominent game publishers like Activision Blizzard and Electronic Arts are increasingly focusing on mobile gaming, attracted by the market’s expansion and revenue potential. These companies are competing with mobile gaming giants like Tencent, Sea, and Perfect World. The shift from desktop to laptop computing, accelerated by the COVID-19 pandemic, has further fueled this trend. Dell Technologies highlights that service-oriented industries and the public sector are leading the adoption of notebook PCs, which complements the mobile gaming surge.
The rapid increase in smartphone adoption is a crucial driver of the gaming market’s growth. India has surpassed China as the primary consumer of mobile games, with 15 billion game downloads in the previous year alone. This surge is supported by affordable mobile data and the anticipated rollout of 5G networks, which promise faster game downloads and enhanced gaming experiences. Samsung’s plan to shift part of its smartphone manufacturing to India, aiming to produce over USD 40 billion worth of devices, further solidifies India’s position as a critical hub for mobile gaming.
Android games dominate the Indian gaming market due to the widespread use of Android smartphones. A Newzoo survey reported 657 million monthly users for leading games on Google Play in India. This dominance is reflected in the number of Indian publishers on Google Play, with 5,283 out of 166,039 game publishers being Indian. Leading Indian publishers such as Gammation Technologies Pvt Ltd., Words Mobile, Moonton, Moonfrog, and Games2win.com are significant contributors to this trend.
The ban on PUBG has led to a surge in alternative games, such as Call of Duty and FAU-G, the latter being an Indian-developed rival. This shift highlights the resilience and adaptability of the Indian gaming industry, ready to capitalize on new opportunities and market demands.
The growth of mobile esports in India is another notable trend. With 5G networks capable of supporting up to one million devices per square kilometer, multiplayer mobile gaming is set to flourish. This technological advancement will likely lead to a surge in mobile esports participation and viewership, further driving the gaming market’s growth.
The expanding user base of the gaming industry includes a growing number of female gamers. As this audience grows, more women are expected to enter the gaming industry, particularly in leadership roles. This shift is not only diversifying the player base but also the industry workforce, contributing to a more inclusive gaming ecosystem.
India’s gaming market is on a path of rapid expansion, driven by technological advancements, favorable government policies, and a massive youth demographic. The integration of WEB3 technologies, the dominance of mobile gaming, and the significant role of Android games highlight the dynamic nature of this market. As India continues to grow as a major player in the global gaming industry, the opportunities for innovation and growth are immense, promising a vibrant future for gamers, developers, and investors alike.
